In 1981 Peyrelevade was appointed deputy director of the cabinet and economic adviser to French Prime Minister Pierre Mauroy, and, while professing scepticism about its extent, oversaw the public sector.

He was previously a teacher of economics at the École Polytechnique, and has written on the evolution of contemporary capitalism, particularly in his 2005 book Le capitalisme total, published by the La République des idées think tank.

In the book he criticises exaggerated forms of capitalism, and proposes a ban on stock options as part of executive compensation, thereby avoiding conflict of interest, and a lowering of dividends to shareholders to limit speculation.

He believes that the 35-hour working week introduced by President Lionel Jospin in 2000 was destructive of French competitiveness within the Eurozone, while "Germans were seriously putting their affairs in order".

Although Peyrelevade had personal sympathy for 2012 President François Hollande, he was sceptical of his dialogue with the French Green party who advocate a 32-hour working week with a refusal to contemplate austerity and high productivity.

He is a director of other French and European leading companies, including Bouygues, DNCA Finance, and BG Bonnard & Gardel Holding SA, and is a member of the supervisory board of KLM.